Social Commerce: How eCommerce Leaders are Leveraging New Platforms and Driving Engagement

An hour-long shopping event on TikTok brings in the same, if not more than a week’s worth of sales at a traditional store. An interactive Instagram live gains thousands upon thousands of comments. Augmented reality (AR) allows Snapchat users to test makeup and share the images straight to friends.

This is the new, dynamic world of social commerce retail brands are navigating. A world where customers are used to exploring products and completing transactions through social media platforms, being drawn in by evolving trends paired seamlessly with innovative technology.

Social sells, there is no doubt about that. However, with the rise of platforms like Instagram and TikTok, the question stands: How can German retailers leverage new social commerce and drive engagement?

As part of our highly anticipated eTail Germany 2024 Playbook, here we dive deeper into how eCommerce leaders can harness the power of social commerce to enhance their brand identity. The research featured input from 150 eCommerce leaders from various high-profile organisations from across the DACH regions. Even in the face of uncertainty, German eCommerce continues to grow with many bright new opportunities on the horizon.

Crafting an effective social commerce strategy is the linchpin for capturing both the hearts and wallets of customers. When asked how their organisation is tackling falling engagement rates and interactions, respondents emphasised the need for innovative solutions to boost engagement rates—an overarching goal for eCommerce leaders.

The prevailing theme is the delivery of consistent content while staying attuned to evolving trends, a balanced approach that fosters deeper connections with target audiences.

Another shared principle among successful eCommerce leaders is the cultivation of a community and meticulous catering to a niche audience. This not only ensures authenticity in social media engagement but also lays the groundwork for a robust brand identity, seamlessly converting clicks into tangible sales.

In the competitive landscape of social media, standing out is imperative for success. A significant 64% of our survey respondents are actively investing efforts in crafting engaging, personalised content, while 48% strategically leverage paid advertisements. The key lies in fine-tuning targeting options, ensuring a precise reach that resonates with the right shoppers, ultimately elevating businesses and enhancing product discoverability.

This is a lot to ask of eCommerce leaders and to overcome initial barriers, they are looking to key tools.

Try Before You Buy

The influence of recommendations on social platforms cannot be overstated. Particularly for the younger generations, trust in peer reviews and recommendations holds paramount importance. However, for Generation Z, social media influencers wield substantial conversion power. A noteworthy revelation from Afterpay indicates that a significant 43% of Gen Z consumers are inclined to make a purchase based on an influencer's recommendation.

For eCommerce leaders targeting the German market, strategically leveraging social media influencers, including micro-influencers, emerges as a potent strategy to drive social commerce sales. This approach is especially effective among the younger demographic, which actively seeks shopping inspiration, follows trends, and engages in community building on various social platforms. By aligning with influencers who resonate with their audience, eCommerce leaders can tap into a powerful avenue for enhancing brand visibility and fostering connections that lead to increased sales.

Investing in AI and ML to More Effectively Leverage Social Commerce

In the dynamic realm of eCommerce, German industry leaders are increasingly recognising the transformative power of Artificial Intelligence (AI) and Machine Learning (ML) tools. Investing in these cutting-edge technologies is seen as the strategic cornerstone for designing approaches that guarantee optimum customer engagement.

As the eCommerce landscape evolves, the integration of AI and ML allows for the seamless analysis of vast datasets, unveiling valuable insights into consumer behaviours, preferences, and trends.

By harnessing AI and ML tools, eCommerce leaders in Germany can refine their social media strategies, tailoring them with precision to the ever-changing needs of their target audience. From personalised product recommendations to predictive analytics that forecast consumer trends, these technologies empower leaders to stay one step ahead in the competitive market.

The result is not only enhanced customer satisfaction but also a significant boost in operational efficiency. As German eCommerce pioneers continue to invest in AI and ML, they position themselves at the forefront of innovation, setting the stage for a future where intelligent technologies shape and elevate the customer experience to unprecedented heights.

Closing Remarks

The journey toward heightened engagement is paved with careful attention to detail. As we navigate the vast landscape of social media strategies, it becomes evident that regular analytics checks are not merely a formality but a crucial compass guiding our efforts. Delving into the metrics of reach and engagement serves as the indispensable roadmap, illuminating the areas where brands should concentrate their energies.

The mantra here is clear: don't overlook the significance of small steps. By embracing a proactive approach, such as A/B testing and continuously refining the content you share, you not only foster short-term growth in engagement but also sow the seeds for a thriving community of loyal customers on social platforms. In the grand tapestry of social commerce, every tweak, adjustment, and experimentation contributes to the overarching goal of cultivating a dynamic, engaged audience—one that not only converts clicks into sales but also becomes a steadfast community propelling the brand towards sustained success in the German eCommerce landscape.

Download the full eTail Germany Playbook here for more information!